PEMEX Debt; Increase in Oil Prices: The Week in Oil & Gas

By March 2024, PEMEX’s debt to suppliers surged by 17.3% to MX$163.207 billion (US$9 billion). Simultaneously, geopolitical tensions propelled Brent crude to US$91/b, as reported by the World Bank. Additionally, the presence of oil derivatives in Benito Juárez's water was confirmed. Moreover, an electrical failure at PEMEX’s Francisco I. Madero refinery in Ciudad Madero, Tamaulipas, resulted in a release of yellow smoke, prompting plant shutdowns. PEMEX reassured the public that this represented no harm to people’s health.

This is the Week in Oil & Gas!

PEMEX’s 17.3% Increase in Debt

According to a report released on Monday, PEMEX saw a 17.3% increase in its debt to suppliers and contractors, reaching MXN$163.207 billion (US$9 billion) as of March 2024. The report also indicates that the company has invoiced obligations dating back to 2023 and 2024, totaling MXN$162.881 billion. Learn more about it here.

Geopolitical Tensions Propel Oil Prices

According to the World Bank, geopolitical tensions have consistently boosted oil prices over the past two years, with Brent crude reaching US$91/b, significantly above the 2015-2019 average of US$57/b. Forecasts anticipate an average of US$84/b in 2024, dropping to US$79/b in 2025 barring conflict-related supply disruptions. However, escalation in the Middle East could cause disruptions, potentially driving Brent prices to US$92/b this year and surpassing US$100/b in severe scenarios. Read the whole story here.

Oil Derivatives Detected in Benito Juarez Water

The findings regarding the presence of oil derivatives in the water of the Benito Juarez municipality, as reported by the neighborhood association Guardianes del Agua, align with the results shared by specialists from the Water Research Network at Universidad Autónoma Metropolitana (RedAgUAM). Both groups identified the presence of toluene and dichlorobenzene in samples taken from the Del Valle neighborhood last week. Learn more about it here.

Incident at PEMEX Refinery

A malfunction at the Francisco I. Madero refinery in Ciudad Madero, Tamaulipas, resulted in a significant release of yellow smoke. According to official statements from PEMEX, the incident was caused by an electrical failure in the thermoelectric area 1, leading to a power outage and the shutdown of processing plants. While this resulted in the emission of yellow smoke, PEMEX assured the public that it posed no harm to the population. Read the whole article here.